The iShares MSCI World ETF (ticker: URTH) achieved a noteworthy total return of 21.28% for the fiscal year 2025. This impressive performance can be largely attributed to the burgeoning artificial intelligence landscape and the overall vigor of developed equity markets.
A considerable emphasis on primary technology assets has become a hallmark of the fund’s evolution, offering both lucrative prospects and conspicuous concentration risks.
During 2025, URTH’s return of 21.28% narrowly eclipsed its benchmark, the MSCI World Index, which posted a return of 21.09%. This fund boasts exposure to 1,322 individual equities spanning 23 developed countries.
A striking geographical concentration is apparent, with U.S. equities comprising 72.19% of the overall portfolio. The information technology sector predominates, representing 26.26% of total fund assets.
Essential Fund Metrics:
– Total Return (2025): 21.28%
– Number of Holdings: 1,322
– U.S. Weighting: 72.19%
– IT Sector Allocation: 26.26%
– Largest Holding: NVIDIA Corp at 5.44%
Portfolio Composition Dominated by Mega-Cap Technology
Adhering to a market-cap-weighted strategy, the ETF has allocated a significant proportion of its assets to its largest holdings. The top ten constituents represent a collective 27.0% of the portfolio, prominently featuring U.S. technology and communication service firms.
Top Ten Holdings by Weight:
1. NVIDIA Corp (Technology) – 5.44%
2. Apple Inc (Technology) – 4.72%
3. Microsoft Corp (Technology) – 3.97%
4. Amazon.com Inc (Consumer Cyclical) – 2.66%
5. Alphabet Inc Class A (Communication Services) – 2.19%
6. Alphabet Inc Class C (Communication Services) – 1.85%
7. Broadcom Inc (Technology) – 1.83%
8. Meta Platforms Inc (Communication Services) – 1.70%
9. Tesla Inc (Consumer Cyclical) – 1.52%
10. JPMorgan Chase & Co (Financials) – 1.09%
The fund’s substantial investment in NVIDIA renders it particularly susceptible to fluctuations in the AI and semiconductor arenas. The market volatility following the January 2025 introduction of the Chinese AI model DeepSeek underscored the inherent concentration risk associated with a tech-heavy portfolio.
Geographical and Sector Distribution
Besides its dominant focus on U.S. equities, significant country weights include Japan (5.40%), the United Kingdom (3.56%), Canada (3.27%), and France (2.64%).
The sector allocation further illustrates the technology inclination:
– Information Technology: 26.26%
– Financials: 16.68%
– Industrials: 11.69%
– Consumer Cyclical: 9.91%
– Health Care: 9.83%
– Communication Services: 8.61%
With 1,322 holdings, the fund exhibits broader diversification compared to the typical comparable product, which normally encompasses roughly 364 stocks.
Risk Profiles and Trading Characteristics
The URTH fund has consistently displayed performance closely aligning with its benchmark across various timeframes.
Performance Comparison with MSCI World Index:
– Year-to-Date (2025): URTH 21.28% | Index 21.09% | Difference: +0.19 ppt
– 1 Month: URTH 0.75% | Index 0.81% | Difference: -0.06 ppt
– 3 Months: URTH 3.03% | Index 3.12% | Difference: -0.09 ppt
– 3 Years (annualized): URTH 21.29% | Index 21.17% | Difference: +0.12 ppt
– 5 Years (cumulative): URTH 78.63% | Index 77.38% | Difference: +1.25 ppt
The fund’s 3-year volatility is registered at 11.59%. Its beta of 0.95 vis-à-vis the S&P 500 indicates it has experienced marginally less volatility than the large-cap U.S. benchmark.
The ETF enjoys a high level of liquidity and accessibility for investors:
– 30-Day Average Volume: 436,969 shares
– 30-Day Median Bid/Ask Spread: 0.03%
– Premium/Discount to NAV: -0.09%
– 52-Week Price Range: $136.34 to $189.95 (USD)
URTH is trading near its historical apex, with the lower ambit of its 52-week range at approximately $136.34, serving as a technical support threshold.
Competitive Landscape: Evaluating URTH
URTH vies within a saturated market of global equity ETFs, where variances in cost, coverage, and structural elements emerge as vital differentiators.
Comparison with Principal Competitors:
| Metric | URTH (iShares) | VT (Vanguard) | SPPW (SPDR) |
|---|---|---|---|
| Expense Ratio (TER) | 0.24% | 0.06% | 0.12% |
| Assets Under Management | $6.9 billion | $57.2 billion | $17.5 billion |
| Number of Holdings | 1,322 | 9,957 | 1,311 |
| Underlying Index | MSCI World | FTSE Global All Cap | MSCI World |
| Domicile | USA | USA | Ireland |
| Distribution | Semi-Annual | Quarterly | Accumulating |
| 1-Year Return (USD) | 21.28% | 22.43% | 21.24% |
Although URTH’s fee of 0.24% is higher than less expensive alternatives such as VT and SPPW, it remains beneath the category average of 0.35%. VT’s broader return of 22.43% can be credited to its inclusion of emerging market and small-cap equities, as evidenced by its significantly larger number of holdings and asset base. SPPW, meanwhile, tracks the same MSCI World Index as URTH but operates as an Irish-domiciled, accumulating ETF, boasting approximately half the ongoing expenses.
In 2025, URTH garnered net inflows of $1.52 billion, inclusive of $646.81 million in the fourth quarter alone. For many U.S.-based investors, the fund’s domestic domicile and semi-annual distribution structure may offer tax benefits.
Valuation, Prognosis, and Essential Considerations
The forthcoming review of the MSCI World Index is scheduled for February 2026. Considering the fund’s significant ~26% allocation to technology, advancements in AI infrastructure and the semiconductor sector are likely to remain crucial determinants of future performance.
Current valuation metrics indicate a heightened pricing level, consistent with a growth-oriented asset allocation:
– Price-to-Earnings (P/E) Ratio: 26.04 (Category Average: 20.55)
– Price-to-Book (P/B) Ratio: 3.91
– Dividend Yield (Trailing 12 Months): 1.49%
– SEC Yield: 1.24%
Approximately 28% of the fund’s assets are invested in non-U.S. securities. This allocation has benefited from the depreciation of the U.S. dollar in 2025, as evidenced by a 9.4% decline in the Dollar Index throughout the year, marking its weakest annual performance since 2017.
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